[Federal Register Volume 59, Number 228 (Tuesday, November 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29273]
[[Page Unknown]]
[Federal Register: November 29, 1994]
=======================================================================
-----------------------------------------------------------------------
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1837 and 1852
RIN 2700-AB77
Revision to NASA FAR Supplement Coverage on Pension Portability
AGENCY: Office of Procurement, Procurement Policy Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the policies regarding pension portability
under NASA contracts. It amends NASA's policies dealing with vesting
period requirements, flowdown to subcontractors, and sets forth the
conditions when pension portability would be appropriate. The rule
establishes more consistent treatment of the vesting period and
subcontractor flowdown issues.
EFFECTIVE DATE: December 29, 1994.
FOR FURTHER INFORMATION CONTACT:
Mr. Joseph Le Cren, (202) 358-0444.
SUPPLEMENTARY INFORMATION:
Background
On April 19, 1994, a proposed rule to amend the NFS to revise
NASA's regulation on pension portability was published in the Federal
Register (59 FR 18518) for comment. All comments were reviewed. No
changes were made as a result of the comments. However, a review of the
proposed rule in response to one of the comments disclosed the omission
of a comma in 1852.237-71(a)(ii) between ``defined contribution plan''
and ``or a multiparty benefit plan.'' The comma is in the existing
clause at 1852.237-71 but had been inadvertently omitted in the
proposed rule. The final rule restores the comma.
Impact
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule does not
impose any reporting or record keeping requirements subject to the
Paperwork Reduction Act.
List of Subjects in 48 CFR Parts 1837 and 1852
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR parts 1837 and 1852 are amended as follows:
1. The authority citation for 48 CFR parts 1837 and 1852 continues
to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1837--SERVICE CONTRACTING
2. Subpart 1837.1 is revised to read as follows:
Subpart 1837.1--Service Contracts--General
1837.101 Definitions.
1837.110 Solicitation provisions and contract clauses.
1837.170 Pension portability.
Authority: 42 U.S.C. 2473(c)(1).
Subpart 1837.1--Service Contracts--General
1837.101 Definitions.
Pension portability means the recognition and continuation in a
successor service contract of the predecessor service contract
employees' pension rights and benefits.
1837.110 Solicitation provisions and contract clauses.
The contracting officer shall use the clause at 1852.237-71,
Pension Portability, in a solicitation, contract or negotiated contract
modification for additional work when the procurement officer
determines, in accordance with the requirements of 1837.170, that
pension portability is in the Government's best interest.
1837.170 Pension portability.
(a) It is NASA's policy not to require pension portability in
service contracts. However, pension portability requirements may be
included in a solicitation, contract, or contract modification for
additional work under the following conditions:
(1)(i) There is a continuing need for the same or similar services
for a minimum of five years (inclusive of options) and, if and when the
contractor changes, a high percentage of the predecessor contractor's
employees are expected to remain with the program; or
(ii) Where the employees under a predecessor contract were covered
by a portable pension plan, a follow-on contract or a contract
consolidating existing services shall include pension portability as
long as the total contract period covered by the plan, past and future,
covers five years.
(2) Only defined contribution plans, or multiparty defined benefit
plans operated under a collective bargaining agreement where the plan
follows the employee instead of the employer, shall be permitted in the
portability provisions;
(3) Vesting shall be 100 percent at the earlier of one year of
continuous employee service or contract termination;
(4) There is a clear description of the plan, including coverage
regarding service, pay, liabilities, vesting, termination, and benefits
from prior contracts, as appropriate; and
(5) The procurement officer has made a written determination that
such a provision is in the Government's best interest, including the
facts supporting that determination.
(b) The procurement officer shall maintain a record of all written
determinations that the use of pension portability is in the
Government's best interest.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Section 1852.237-71 is revised to read as follows:
1852.237-71 Pension portability.
As prescribed at 1837.110(a), insert the following clause:
Pension Portability
(Nov 1994)
(a) In order for pension costs attributable to employees
assigned to this contract to be allowable costs under this contract,
the plans covering such employees must:
(i) Comply with all applicable Government laws and regulations;
(ii) Be a defined contribution plan, or a multiparty defined
benefit plan operated under a collective bargaining agreement. In
either case, the plan must be portable, i.e., the plan follows the
employee, not the employer;
(iii) Provide for 100 percent employee vesting at the earlier of
one year of continuous employee service or contract termination; and
(iv) Not be modified, terminated, or a new plan adopted without
the prior written approval of the cognizant NASA Contracting
Officer.
(b) The Contractor shall include paragraph (a) of this clause in
all subcontracts for continuing services under a service contract
where (1) the prime contract requires pension portability, (2) the
subcontracted labor dollars (excluding any burdens or profit/fee)
exceed $2,500,000 and ten percent of the total prime contract labor
dollars (excluding any burdens or profit/fee), and (3) the
conditions at 1837.170 are satisfied.
[FR Doc. 94-29273 Filed 11-28-94; 8:45 am]
BILLING CODE 7510-01-M